ACCOUNTING

Question 1

What are alternatives to establishing a small business?

Answer 1

> Invest money in a bank account to let it grow
Invest in property
Invest in shares
Buying existing business / Franchise

Question 2

What are the resources required to establish a small business?

Answer 2

> Personal qualities
Financial resources
External support

Question 3

What are the types of ownership structures?

Answer 3

> Sole trader
Partnership
Proprietary company

Question 4

What are the accounting principles?

Answer 4

Consistency
Historical cost
Entity
Reporting period
Monetary unit
Conservatism
Going concern

Question 5

What are the qualitative characteristics?

Answer 5

Relevance
Reliability
Understandability
Comparability

Question 6

What are the reasons for establishing a small business?

Answer 6

> A profit motive
A desire to be your own boss
If you have identified a possible gap in the market
Unemployment